Paris Club Reschedules Georgia’s Foreign Debt

The Paris Club of creditors agreed on July 21 to a restructuring plan for Georgia’s external debt.

The agreement follows the International Monetary Fund’s approval of Georgia’s arrangement under the Poverty Reduction and Growth Facility on June 4, 2004, which supports the Government’s ambitious reform programme.

This agreement consolidates roughly US 160.6 million in debts accrued by Georgia before November 1, 1999. This amount consists of arrears (including late interest), that were due to be paid by May 31, 2004, as well as maturities falling due between June 1, 2004 up to December 31, 2006.

“This debt restructuring will make an important positive contribution to Georgia’s economic outlook. After a comparable effort from other creditors, this rescheduling will satisfy Georgia’s financing requirements for 2004 -2006,” reads a news release issued by the Paris Club on July 21.

Georgia’s foreign debt reaches total of USD 1,7 billion.

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